moral hazard
Briefly explain in which of the following situations moral hazard is likely to be less of a problem.
a. A manager is paid a flat salary of $150,000.
b. A manager is paid a salary of $75,00 plus 10% of the firm’s profits.
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moral hazard
Briefly explain in which of the following situations moral hazard is likely to be less of a problem.
a. A manager is paid a flat salary of $150,000.
b. A manager is paid a salary of $75,00 plus 10% of the firm’s profits.